United Rentals, Inc. stock research
FY2023 Q2
United Rentals (URI) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was lower than cost of revenue, resulting in a negative gross margin. Gross profit was higher than the prior quarter, but the gross margin weakened compared to both the preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue was lower than cost of revenue, resulting in a negative gross margin. Gross profit was higher than the prior quarter, but the gross margin weakened compared to both the preceding quarter and the same quarter one year earlier.
- The strongest observable driver was the cost of revenue surpassing revenue, which directly caused the negative gross margin.
- Compared to the immediately preceding quarter, revenue declined sharply while cost of revenue increased slightly, leading to a much lower gross margin. Compared to the same quarter one year ago, revenue was more negative and cost of revenue was higher, also resulting in a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-87.4%
Gross profit
$1.4B
Revenue
-$1.6B
Cost of revenue
$2.1B
Quarter-over-quarter change
-125.1 pts
Year-over-year change
-6.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $3.3B | $1.2B | $2.0B | 37.8% |
| Jun 30, 2023 | -$1.6B | $1.4B | $2.1B | -87.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-125.1 pts
Year-over-year change
Jun 30, 2022
-6.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the cost of revenue surpassing revenue, which directly caused the negative gross margin.
Compared to the immediately preceding quarter, revenue declined sharply while cost of revenue increased slightly, leading to a much lower gross margin. Compared to the same quarter one year ago, revenue was more negative and cost of revenue was higher, also resulting in a lower gross margin.
Monitor the relationship between cost of revenue and revenue for sustained inversion.